Vivint Solar Inc., the residential solar-cell installer backed by Blackstone Group LP (BX), raised $330 million in a U.S. initial public offering.
Vivint Solar sold 20.6 million shares for $16 apiece, according to a statement yesterday, after offering them for $16 to $18 apiece. Some of the proceeds will be used to repay debt owed to Blackstone, which will hold a 78 percent stake after the offering, regulatory filings show.
Vivint Solar was created nearly three years ago under Vivint Inc., a provider of residential-security services and technology that allows customers to
control features in their homes remotely. Blackstone acquired Vivint’s three main assets in a $2 billion buyout in 2012 from a group led by Goldman Sachs Group Inc.
Based in Lehi, Utah, the company posted revenue of $6.17 million last year, mostly from selling solar operating leases, filings show. The company offers 20-year contracts for electricity powered by solar energy that costs customers as much as 30 percent less than their current utility rates.
Vivint Solar’s IPO comes amid a backdrop of surging demand for rooftop power systems. Developers installed 792 megawatts of photovoltaic panels atop U.S. homes last year, up 60 percent from 2012, according to the Solar Energy Industries Association.
Shares of its larger rival SolarCity Corp. have jumped 72 percent over the past year, as the San Mateo, California-based company continued to add more megawatts of new residential and commercial solar systems.
Vivint’s shares will be listed on the New York Stock Exchange under the symbol VSLR. Goldman Sachs, Bank of America Corp. and Credit Suisse Group AG managed the offering.
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